* European sharemarkets fell with the pan-European STOXX600 index down by 0.2% as Italian shares sold-off. Italy's decision to stick to its growth and deficit plans in its re-submitted draft budget set the stage for a showdown with the EU over breaking structural deficit limits. Italy's FTSE MIB index fell by 0.8% as bank stocks dropped by 1.5%. Germany's Dax index fell 0.1%. But the UK FTSE index was up 0.2%. In London trade, shares of Rio Tinto fell by 3.5% and BHP dropped by 2.4%.
* US sharemarkets declined on Wednesday. Guggenheim Partners downgraded Apple (-2.4%) citing concerns about a slowdown in iPhone sales. Snap shares fell 4.2% on reports that US regulators have subpoenaed the social media app maker for information about its March 2017 IPO. Utility PG&E shares fell by 26.0% on potential liability claims should its equipment have been found to have caused the Californian wildfires. An hour before the close of trade, the Dow Jones was down near 100 points or 0.4%. The S&P500 index declined by around 0.3% and the Nasdaq index was down by near 20 points or 0.3%.
* US Treasuries were firmer (yields fell) on Wednesday due to investor safe-haven demand as equity markets sold-off. US 2-year yields fell by 4 points to near 2.86% and US 10-year yields dropped by 2 points to near 3.12%.
* Major currencies were stronger against the US dollar in US and European trade compared with the Asian close. The Euro rose from lows near US$1.1262 to highs near US$1.1343 and was near US$1.1333 in late US trade. The Aussie dollar rose from lows near US71.86 cents to highs near US72.40 cents in late US trade. And the Japanese yen strengthened from 113.99 yen per US dollar to JPY113.29 and was near JPY113.49 in late US trade as Brexit negotiations moved currency markets.
* Global oil prices rose for the first time in 13 trading sessions on growing expectations that OPEC and its allies may cut output by 1.4 million barrels per day (bpd) at its meeting next month. In its monthly report, the IEA said the implied stock build for the first half of 2019 is 2 million bpd. And the IEA left its forecast for global demand growth for 2018 and 2019 unchanged at 1.3 million bpd and 1.4 million bpd, respectively. Brent crude rose by US65 cents or 1.0% to US$66.12 a barrel and the US Nymex price rose by US56 cents or 1.0% to US$56.25 a barrel.
* Base metal prices held steady on the London Metals Exchange on Wednesday as concerns over weak retail sales in China largely offset positive sentiment associated with better-than-expected production and investment data. Zinc rose 0.8%.
* The gold futures price rose by US$8.70 an ounce or 0.7% to $1,210.10 an ounce. The spot gold price was trading near US$1,211 an ounce in late US trade. Iron ore fell by US65 cents or 0.9% to US$74.55 a tonne.
Ahead: In Australia, the employment report is issued and RBA Deputy Governor Guy Debelle speaks. China house prices are scheduled. US retail sales, export/import prices and the Philadelphia Fed manufacturing index are released. US Federal Reserve Chair Jerome Powell speaks
